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Vanguard Teams Up with FTSE for Ireland ETFs


FTSE Group is helping Vanguard expand its offerings overseas as the index provider licenses developed European, Asia ex-Japan, Japan and world stock benchmarks for four new Ireland-listed exchange traded funds.

According to a press release, Vanguard will utilize four FTSE indices, the FTSE Developed Europe Index, FTSE Developed Asia Pacific ex Japan Index, FTSE Japan Index and FTSE All-World High Dividend Yield Index.

The FTSE Developed Europe Index, FTSE Developed Asia Pacific ex Japan Index and FTSE Japan Index track large- and mid-cap stocks in their respective regions. The TSE All-World High Dividend Yield Index is comprised of stocks with a higher-than-average dividend yield.

“FTSE offers best-in-class index construction and its benchmarks provide comprehensive coverage of their respective markets,” Axel Lomholt, Vanguard’s Head of International Product Development and Management, said in the press release. “Vanguard is pleased to extend its deep relationship with FTSE as it continues to extend its straightforward, low-cost ETF range across Europe.”

Last October, Vanguard switched indices on 22 U.S.-listed funds to FTSE from MSCI benchmarks during the so-called ETF fee wars. The move showed that fund sponsors could cut index providers in an attempt to lower costs and investor expenses. [Vanguard on ETF Fees: The War of Fog]

For more information on indexing in ETFs, visit our indexing category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.